Table of Contents
Key Points
- Ladi Jadesimi’s Aradel Holdings secures full ownership of Olo marginal fields, expanding its upstream portfolio in the Niger Delta.
- Aradel plans to leverage shared infrastructure to cut costs, maximize output, and extend asset life cycles in Nigeria’s oil sector.
- Aradel’s revenue surged 162.8% to $378.64 million, profit jumped 382.1%, and shareholders benefited from a $62 million dividend after a strong 2024.
Aradel Holdings, the Nigerian energy group led by multimillionaire Ladi Jadesimi, has finalized its $19.5 million acquisition of the Olo and Olo West Marginal Fields from the TotalEnergies/NNPC Joint Venture. This strategic move strengthens Aradel’s upstream portfolio and advances its multi-field cluster development strategy in the Niger Delta.
The acquisition, initially announced in August 2024, includes a $16 million upfront payment and $3.5 million in deferred commitments. By securing full ownership of these fields, Aradel reinforces its long-term vision of creating an integrated production hub, leveraging shared infrastructure to optimize costs and efficiency.
According to Aradel, the newly acquired assets will complement its existing operations, which include the Ogbele Field (OML 54), Omerelu (PPL 247), and OPL 227 joint venture. The company plans to enhance production capacity by deploying advanced drilling technologies and integrating crude oil, gas, and refined product operations.
Multi-field cluster development: A game-changer
Aradel is set to implement a multi-field cluster development model, aligning with industry best practices to maximize resource recovery while reducing operational expenses. The Olo fields, located near Aradel’s Ogbele asset, will benefit from shared infrastructure, including pipelines, processing plants, and export terminals.
Industry analysts note that cluster development significantly improves the economic viability of marginal fields, which often face high standalone development costs. By pooling resources, Aradel aims to enhance recovery rates and extend the lifecycle of its assets, positioning itself as a key player in Nigeria’s energy sector.
Beyond this acquisition, Aradel has secured a 5.14 percent equity stake in Chappal Energies Mauritius Limited, diversifying its exposure across Africa’s upstream oil and gas markets.
Robust financial performance and shareholder returns
Aradel Holdings, formerly Niger Delta Exploration & Production Plc, has evolved into a leading energy group since its 1992 founding. Under CEO Ladi Jadesimi, the company has expanded its upstream, midstream, and downstream operations, optimizing production to solidify its role in Nigeria's oil and gas sector.
Aradel’s latest acquisition comes on the back of a stellar financial year. The company reported a 162.8 percent revenue surge to N581.2 billion ($378.64 million) in 2024, driven by a 244.6 percent increase in export crude oil revenue and higher production volumes. Profit after tax soared 382.1 percent to N259.1 billion ($168.69 million), reflecting strong operational efficiencies and higher margins.
In line with its performance, Aradel has declared a final dividend payout of $62 million for the 2024 fiscal year, reinforcing its commitment to shareholder value. With its expanded asset base and aggressive production strategy, Aradel Holdings is solidifying its position as a leading player in Nigeria’s evolving energy landscape.
